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Dairy “probably the major issue” as Canada-U.S. trade talks drag on

UPDATED – Dairy could be the most contentious issue in Canada-U.S. trade talks as the August 19 tariff deadline approaches.

“It is more than a sticking point,” said Ted McKinney, CEO of the U.S. National Association of State Departments of Agriculture. “It is probably the major issue.”

Auto tariffs on Canadian-made vehicles have also emerged as a key sticking point in the talks, two automotive industry sources told Reuters on Monday.

As the tariff deadline draws near, Canada’s minister responsible for U.S. trade relations, Dominic LeBlanc, and its chief trade negotiator, Janice Charette, have stepped up talks with their U.S. counterparts.

Canada faces new tariffs this week. The duties, first announced in July, propose new a 50 per cent tariff on Canadian goods including alcohol, honey and some dairy products. Unlike previous tariffs, these would apply to items covered under the CUSMA trade agreement.

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